Economic resilience and the role of fiscal policy in the Asean-5 countries

ASEAN–5 countries are vulnerable to external shocks as these countries are highly integrated with external markets through international trade and foreign capital flow. These countries have experienced huge negative economic impact during the Asian Financial Crisis (AFC) and the Global Financial Cri...

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Main Author:	Muhammad Zakir, Abdullah
Format:	Thesis
Language:	eng eng eng eng
Published:	2019
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/8392/1/depositpermission_s900010.pdf https://etd.uum.edu.my/8392/2/s900010_01.pdf https://etd.uum.edu.my/8392/3/s900010_02.pdf https://etd.uum.edu.my/8392/4/s900010%20references.docx
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id	my-uum-etd.8392
record_format	uketd_dc
spelling	my-uum-etd.83922021-06-24T06:15:44Z Economic resilience and the role of fiscal policy in the Asean-5 countries 2019 Muhammad Zakir, Abdullah Hassan, Sallahuddin School of Economics, Finance & Banking School of Economics, Finance & Banking HB Economic Theory ASEAN–5 countries are vulnerable to external shocks as these countries are highly integrated with external markets through international trade and foreign capital flow. These countries have experienced huge negative economic impact during the Asian Financial Crisis (AFC) and the Global Financial Crisis (GFC). The aim of this study is to evaluate the economic resilience in the ASEAN–5 countries, to examine the role of fiscal policy as a shock – absorber and, to determine the effectiveness of fiscal policy in stabilizing the economy during the AFC and the GFC. The Ordinary Least Square (OLS) with robust standard error and Autoregressive Distributed Lag (ARDL) analyses are used in the estimation using time series data for the period of 1981 – 2014. The result reveals that Thailand has the highest shock amplification impact among the countries. For shock persistent dimension, Singapore is the highest among the countries. The finding also indicates that automatic stabilizer plays a shock absorber role for all countries. For discretionary fiscal tool, the result shows that it could play a role as a shock absorber in Malaysia, Singapore and Thailand but not for Indonesia and the Philippines. Furthermore, the result reveals that the impact of automatic stabilizers on the economy was effective during the AFC for all countries except for the Philippines. Discretionary fiscal tool is found to be effective for Singapore and Thailand but ineffective for Malaysia, Indonesia and the Philippines during the AFC. During the GFC, automatic stabilizers are effective for all countries except for Thailand. In contrast, discretionary fiscal tool is found to be ineffective for all countries. In the context of policy implication, the study recommends strengthening trade and financial integration among ASEAN members which could reduce external vulnerability and increases economic resilience. 2019 Thesis https://etd.uum.edu.my/8392/ https://etd.uum.edu.my/8392/1/depositpermission_s900010.pdf text eng staffonly https://etd.uum.edu.my/8392/2/s900010_01.pdf text eng 2023-01-05 staffonly https://etd.uum.edu.my/8392/3/s900010_02.pdf text eng public https://etd.uum.edu.my/8392/4/s900010%20references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Hassan, Sallahuddin
topic	HB Economic Theory
spellingShingle	HB Economic Theory Muhammad Zakir, Abdullah Economic resilience and the role of fiscal policy in the Asean-5 countries
description	ASEAN–5 countries are vulnerable to external shocks as these countries are highly integrated with external markets through international trade and foreign capital flow. These countries have experienced huge negative economic impact during the Asian Financial Crisis (AFC) and the Global Financial Crisis (GFC). The aim of this study is to evaluate the economic resilience in the ASEAN–5 countries, to examine the role of fiscal policy as a shock – absorber and, to determine the effectiveness of fiscal policy in stabilizing the economy during the AFC and the GFC. The Ordinary Least Square (OLS) with robust standard error and Autoregressive Distributed Lag (ARDL) analyses are used in the estimation using time series data for the period of 1981 – 2014. The result reveals that Thailand has the highest shock amplification impact among the countries. For shock persistent dimension, Singapore is the highest among the countries. The finding also indicates that automatic stabilizer plays a shock absorber role for all countries. For discretionary fiscal tool, the result shows that it could play a role as a shock absorber in Malaysia, Singapore and Thailand but not for Indonesia and the Philippines. Furthermore, the result reveals that the impact of automatic stabilizers on the economy was effective during the AFC for all countries except for the Philippines. Discretionary fiscal tool is found to be effective for Singapore and Thailand but ineffective for Malaysia, Indonesia and the Philippines during the AFC. During the GFC, automatic stabilizers are effective for all countries except for Thailand. In contrast, discretionary fiscal tool is found to be ineffective for all countries. In the context of policy implication, the study recommends strengthening trade and financial integration among ASEAN members which could reduce external vulnerability and increases economic resilience.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Muhammad Zakir, Abdullah
author_facet	Muhammad Zakir, Abdullah
author_sort	Muhammad Zakir, Abdullah
title	Economic resilience and the role of fiscal policy in the Asean-5 countries
title_short	Economic resilience and the role of fiscal policy in the Asean-5 countries
title_full	Economic resilience and the role of fiscal policy in the Asean-5 countries
title_fullStr	Economic resilience and the role of fiscal policy in the Asean-5 countries
title_full_unstemmed	Economic resilience and the role of fiscal policy in the Asean-5 countries
title_sort	economic resilience and the role of fiscal policy in the asean-5 countries
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2019
url	https://etd.uum.edu.my/8392/1/depositpermission_s900010.pdf https://etd.uum.edu.my/8392/2/s900010_01.pdf https://etd.uum.edu.my/8392/3/s900010_02.pdf https://etd.uum.edu.my/8392/4/s900010%20references.docx
_version_	1747828384372621312

Economic resilience and the role of fiscal policy in the Asean-5 countries

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